The NZD/USD surged higher last week following the rise in market sentiment, but the lack of momentum to break above the April high paired with expectations for further easing by the Reserve Bank of New Zealand could weigh on the exchange rate over the near-term.
[B]Currency Pair:[/B] NZD/JPY
[B]Chart: [/B]60 Min Charts
[B]Short-Term Bias:[/B] Flat
[B][U]Analysis[/U][/B]
The NZD/USD surged higher last week following the rise in market sentiment, but the lack of momentum to break above the April high paired with expectations for further easing by the Reserve Bank of New Zealand could weigh on the exchange rate over the near-term. After reaching a high of 65.32 in October, the kiwi-yen slipped to a low of 44.23 in February and we’ve seen the pair attempt to retrace the sell-off last week however, the pair looks to be finding short-term resistance near 60.70-80 (78.6% Fib), and may hold a broad range going forward as risk trends continue to drive price action in the currency market. Over the next few hours of trading, we may see the NZD/JPY attempt to retrace the sell-off from the beginning of the week to make another run for the 78.6% Fib but nevertheless, as the economic calendar is expected to reinforce a weakening outlook for the $128B economy, fundamental headwinds are likely to drag on the high-yielding currency, and we may see the pair fall back below 57.20-30 (61.8% Fib) to work its way back towards the lower-end of its current range. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
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